Problem Statement

Since its inception, crypto fundraising has undergone significant transformations, particularly from 2016 to 2024. This period has witnessed the evolution of various fundraising methods.

The Landscape of Crypto Fundraising (2016 - 2024)

Between 2016 to 2019, Initial Coin Offerings (ICOs) were the prominent method for early-stage ventures to raise capital. They did so by issuing digital tokens in exchange for cryptocurrency or fiat currency. Over 7,400 ventures used this method to raise more than $35 Billion in funding. However, the ICO market faced challenges due to scams, lack of transparency, and regulatory uncertainty.

Onwards 2020, new crypto fundraising models like Initial Exchange Offerings (IEOs) and Initial DEX Offerings (IDOs) gained popularity. They offered more security measures such as involving exchanges and third party verifications. However, in 2023, the overall crypto fundraising environment experienced a downturn, with a 68% drop in venture capital funding for blockchain startups compared to the previous years. Factors that led to this downturn included macroeconomic conditions, regulatory hurdles, and the fallout from major crypto company failures.

Today in 2024, the crypto fundraising environment has began to show signs of recovery, with emerging trends such as Decentralized Finance (DeFi) fundraising, NFT fundraising, and real-world asset tokenization (RWAs). DeFi platforms have offered decentralized fundraising solutions, while NFTs allow for unique supporter engagement. Plus, advancements in blockchain technology and increased scalability have made investing more accessible and appealing to a broader audience. As we look forward, making fundraising accessible to even the most rudimentary blockchain participant is crucial as it enables innovation and adoption in the long run.